Florida Adjuster Code of Ethics: Duties, Limits, and Penalties

The Florida adjuster code of ethics is a binding set of rules under Florida Statute 626.878 and Rule 69B-220.201 of the Florida Administrative Code that every licensed adjuster in the state must follow.¹ It requires fair dealing with claimants, prompt and truthful claims handling, and hard limits on conflicts of interest, and the Department of Financial Services (DFS) can fine, suspend, or revoke the license of any adjuster who violates it.

Who the Code Applies To

Florida licenses three types of adjusters, and the code covers all of them, though some provisions target public adjusters specifically.

Company employee adjusters work directly for an insurance company and represent the insurer.
Independent adjusters are contracted by insurers, often after disasters, and also represent the insurer.
Public adjusters are hired by policyholders to negotiate claims against insurers. Because they handle claimant money and have a financial stake in the outcome, Florida applies its heaviest restrictions to them, including a $50,000 surety bond.²

Knowing which type you are dealing with matters, because the loyalties are different and so are some of the rules.

The Core Duty: Claimant Interests First

The overarching principle in the code is that an adjuster’s duty to treat the claimant fairly comes before the adjuster’s own financial interest. That language comes straight from the administrative rule, not from a general statement of principle.³

From that principle, the code requires every adjuster to comply with all applicable insurance laws, maintain enough technical knowledge to handle the type of coverage involved, and decline claims that exceed their competence. Florida Statute 626.878, which authorizes the code, specifically demands practices that ensure fair dealing, prohibit conflicts of interest, and preserve the claimant’s right to participate in adjusting their own claim.¹

How Adjusters Must Handle Your Claim

Once an adjuster takes on a claim, the ethical rules require prompt, diligent action. They must respond to communications within a reasonable timeframe and begin investigating immediately after receiving proof-of-loss documentation. Delay is itself an ethical violation.

Adjusters have to make truthful reports based on complete investigations, and they must disclose all relevant benefits, coverage options, and limitations to the policyholder. If a physical inspection takes place, the adjuster is required to leave the policyholder a document showing the adjuster’s name and state license number.

Florida’s unfair claim settlement practices statute reinforces these duties on the insurer side. Claims cannot be denied without a reasonable investigation, coverage must be affirmed or denied within 30 days after proof-of-loss statements are completed, and any denial or compromise offer has to be explained in writing.⁴

Estimates Must Be Itemized and Documented

Loss estimates get their own detailed rules. Adjusters must use an electronic estimating program that produces itemized, per-unit breakdowns of damage covering equipment, materials, labor, and supplies. The price data has to reflect current market rates for the geographic area and be updated at least monthly.³

An adjuster cannot modify the prices generated by the software unless they document that the change is needed for accuracy and reflects local market prices. Any modified estimate must include a variation report showing exactly what changed, and the adjuster must retain every version. Neither the insured nor the insurance company can waive these requirements. If an estimate looks suspiciously low, you have a right to ask for the variation report, and a missing one is a warning sign worth reporting.

What Adjusters Cannot Do

The code draws hard lines around conduct that would compromise objectivity or harm the policyholder.

Fraud and Misrepresentation

False or misleading statements about policy coverage, claim facts, or settlement terms are prohibited. This is one of the compulsory grounds for license revocation under Florida Statute 626.611, meaning the DFS has no discretion to overlook it.⁵

Unauthorized Practice of Law

Public adjusters cannot give legal advice or negotiate claims involving bodily injury, death, or noneconomic damages. Those claims belong to attorneys, and both the DFS and the Florida Bar can act against a public adjuster who crosses the line.⁶

Controlling Repairs

A public adjuster cannot take control over who performs repair work on your property. Under Florida Statute 626.854(18), no public adjuster (or anyone acting on their behalf) may sign a contract or accept a power of attorney that lets them choose the contractors or vendors doing the repair.⁷ The reason is straightforward: if the person estimating your damage also profits from the repair, the estimate is no longer objective.

Solicitation Limits

Public adjusters may only solicit clients Monday through Saturday, between 8 a.m. and 8 p.m. Sunday solicitation and late-night post-storm door-knocking are off limits.⁶ They also cannot offer loans, cash advances, or gifts worth more than $25 to induce a contract.

Fee Caps for Public Adjusters

Florida caps public adjuster fees by statute, and no contract can override them:

10% of claim payments on claims arising from an event covered by a Governor’s emergency declaration, during the first year after the declaration.⁷
20% of claim payments on non-emergency claims.
20% of additional payments on reopened or supplemental claims, calculated only on new money the public adjuster obtains (not on amounts the insurer already paid).
1% if the insurer pays at or above the policy limit for a coverage part within 14 days of the loss, or within 10 days after the contract is signed, whichever is later.
Zero on any payment the insurer made before the public adjusting contract was signed.

Percentages are calculated on amounts paid to the insured, excluding attorney fees and costs. A contract with fees above these limits violates Florida law.

Contract Requirements for Public Adjusters

If you hire a public adjuster, the contract must be in writing, in at least 12-point type, and must identify the adjuster (full name, business address, license number, phone, email, and firm), you, the loss and its location, your insurer and policy number if available, the type of claim, and the fee percentage. The fee percentage and a fraud statement both have to appear in at least 18-point bold type before the signature line.

The adjuster must also give you a separate disclosure document that explains the three types of adjusters, states that the public adjuster does not work for the insurer, and confirms your right to communicate directly with your insurance company, attorney, or anyone else about your claim.⁸ The statute guarantees a right to cancel, so if an adjuster tells you the contract is unbreakable, that statement is itself a violation.¹

Penalties for Violating the Code

Florida splits enforcement into two tiers: violations that require discipline, and violations that allow it.

Compulsory Discipline

The DFS must deny, suspend, or revoke a license when it finds fraud, willful misrepresentation of policy terms, misappropriation of funds, or a demonstrated lack of fitness or trustworthiness. The same is true when an adjuster materially misrepresents a contract’s terms to settle a claim for less than the policy provides.⁵

Discretionary Discipline

A broader set of violations lets the DFS choose whether to act: violating any provision of the insurance code or a lawful DFS order, engaging in unfair or deceptive practices, or showing a pattern of conduct that makes the adjuster a source of injury to the public.⁹

What the Penalties Are

Administrative fines run up to $500 per violation, or up to $3,500 per violation when the adjuster acted willfully. Beyond fines, the DFS can place an adjuster on probation, suspend the license, or revoke it permanently. A suspended or revoked adjuster is barred from every part of the claims process, including estimating damage, filing paperwork, negotiating with insurers, and participating in mediation or appraisal. Anyone who keeps working claims after suspension or revocation is treated as unlicensed.¹

How to File a Complaint

If you believe an adjuster has violated the code, file a complaint with the DFS Division of Consumer Services through the Consumer Assistance Portal at assistcon.myfloridacfo.gov. You can submit the complaint and supporting documents online, and the DFS will review it and open a formal investigation if warranted.

Document everything before you file. Keep every version of the adjuster’s estimates, all written communications, the contract you signed, and the disclosure form you received. If the adjuster never gave you a written itemized estimate with a variation report, note that too. The absence of required documentation is itself evidence of a violation.

1
Florida Senate. Florida Code 626.878 – Rules; Code of Ethics
2
The Florida Legislature. Florida Code 626.865 – Public Adjuster Qualifications
3
MyFloridaCFO. Florida Administrative Code 69B-220.201 – Ethical Requirements for All Adjusters
4
The Florida Legislature. Florida Code 626.9541 – Unfair Insurance Trade Practices
5
Florida Senate. Florida Code 626.611 – Grounds for Compulsory Refusal, Suspension, or Revocation
6
Florida Senate. Florida Code 626.854 – Public Adjuster Defined; Prohibitions
7
The Florida Legislature. Florida Code 626.854 – Public Adjuster Defined; Prohibitions
8
MyFloridaCFO. Public Adjuster Code of Ethics and Contract Checklist
9
Florida Senate. Florida Code 626.621 – Grounds for Discretionary Refusal, Suspension, or Revocation